Small Tips for Small Businesses

Business

Take Advantage of Some Big Financial Opportunities.

Entrepreneurs and small business owners are the key drivers of tomorrow’s innovations and integral to creating a thriving economy. Are you one of them? Do you have a successful and thriving small business but are stuck on the mundane back end parts of running it? Are you aware of the subtle nuances and differences between something as simple as bank accounts?

Even a simple checking account can come in many flavors! Some pay interest, some pay no interest at all, and others charge fees. Watch for simple things like monthly maintenance fees, the number of free items processed per month, earnings credits, linked accounts, and mobile deposit. A local credit union may offer business checking accounts and personalized services that are tailored for you. Going local also means that you have the benefit of local decisions on your accounts and loans, but at the same time receive top-notch services like merchant card payment processing and returned check collection services. It is not surprising that credit unions can offer this. Many are tech savvy and sometimes offer more than the “big banks”.

A savings account is the backbone that helps build financial security for you and your business. Use it wisely. Shop around for a financial institution that pays YOU. Mobile and online services that allow you to transfer between accounts, competitive interest rates, and no transaction fees are the keys to the financial success of your business.

Guaranteed earnings and closed-end terms. Depending on the direction of interest rates set by the Federal Reserve, you can lock in your money from 6 months to 5 years. Your capital is locked for the term you choose. Currently rates are set to go up, so invest wisely.

Money market accounts give you the end all in flexibility. These kinds of accounts are almost like a cross over between a CD and a savings account. Your money stays liquid while earning higher rates. Some institutions have tiered accounts where higher balances earn higher rates. Remember that most credit unions are not-for-profit and typically offer higher, more competitive rates.